StemCells, Inc. to Present at The Rodman & Renshaw 8th Annual Healthcare Conference.

PALO ALTO, Calif. -- StemCells, Inc. (NASDAQ: STEM) today announced that Rodney Young, Chief Financial Officer, will present a corporate update at the Rodman & Renshaw 8(th) Annual Healthcare Conference scheduled for November 6-8, 2006 at the New York Palace Hotel in New York City. Mr. Young is scheduled to speak at 11:40 a.m. EST on Tuesday, November 7, 2006. There will be a breakout session following the presentation at which Mr. Young will be available to answer questions about the Company.

A webcast of the presentation can be accessed via the following link: http://www.wsw.com/webcast/rrshq10/stem/. The replay of the webcast will be available for 90 days following the presentation.

About StemCells, Inc.

StemCells, Inc. is a clinical-stage biotechnology company leading the discovery, development and commercialization of cell-based therapeutics to treat diseases of the nervous system, liver and pancreas. The Company's programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury. StemCells is the first company to identify, isolate and purify human neural stem cells from brain tissue. The Company is currently conducting a Phase I clinical trial of its proprietary human neural stem cells (HuCNS-SC[TM]) for the treatment of infantile and late infantile neuronal ceroid lipofuscinosis (NCL). NCL, which is often referred to as Batten disease, is a rare and fatal neurodegenerative condition affecting infants and young children. StemCells has approximately 40 U.S. and 100 non-U.S. patents. Further information about the Company is available on its web site at: www.stemcellsinc.com.

Apart from statements of historical facts, the text of this press release constitutes forward-looking statements regarding, among other things, the future business operations of StemCells, Inc. (the "Company") and its ability to conduct clinical trials as well as its research and product development efforts. The forward-looking statements speak only as of the date of this news release. StemCells does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Such statements reflect management's current views and are based on certain assumptions that may or may not ultimately prove valid. The Company's actual results may vary materially from those contemplated in the forward-looking statements due to risks and uncertainties to which the Company is subject, including uncertainty whether results obtained in the animal models of infantile NCL will be able to be translated into treatment for humans; uncertainty as to whether the FDA or other applicable regulators or review boards will permit the Company to continue clinical testing in NCL despite the novel and unproven nature of the Company's technology; uncertainties regarding the timing and duration of any clinical trials; uncertainties regarding the Company's ability to obtain the increased capital resources needed to conduct the later-phase clinical trials necessary for regulatory approvals of HuCNS-SC; uncertainty regarding the validity and enforceability of the Company's patents; uncertainty as to whether HuCNS-SC and any products that may be generated in the future in the Company's stem cell programs will prove safe and clinically effective and not cause tumors or other side effects; uncertainty as to whether the Company will achieve revenues from product sales or become profitable; and other factors that are described under the heading "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K.